A deferred variable annuity is a type of insurance contract designed for long-term savings, particularly for retirement. It allows you to invest in various securities through selected investment portfolios, and the gains or losses on these investments influence the amount accumulated in the fund.
Features of Deferred Variable Annuities:
Accumulation Phase: During this initial period, the policyholder makes contributions to an annuity account, which is then invested according to their preference in selected investment portfolios. The value of the annuity account can increase or decrease depending on the performance of the investments.
Deferred Payments: Unlike immediate annuities, deferred variable annuities begin to make payout distributions at a future date, typically when the policyholder retires. The timing of these payments is decided at the initiation of the contract.
Investment Options: Policyholders can select from a variety of investment portfolios, dependingeld regulations.
